Hallelujah! Good news from the government!
FHA has reduced its monthly mortgage insurance premium from 1.35 to .85 for 96.5% loan to values and from 1.3 to .8 for 95% and below loan to values.
On a $440,000 home (calculated over the weekend), this brought the payment down $195 on a 96.5% loan.
With historically low interest rates AND the reduction in monthly MI premium, home buyers will find their buying power increased proportionately.
In addition, CHDAP (California Housing Down Assistance for Down Payment) program is NOT limited to first time home-buyers.
FHA has a 3 year waiting period on foreclosed and short sale properties.
This opens up new buyers for our markets!
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